Form 1099-C, Cancellation of Debt

What is Form 1099-C?

If you are liable for a debt that is canceled or forgiven you will receive a Form 1099-C and must include the canceled amount in gross income. If you meet certain exclusions or exceptions you may be able to exclude all or part of the amount from taxation. TurboTax will help you determine if you are eligible for any exclusions or exceptions.

In general, you may only have one 1099-C per return using TurboTax. An exception is if you have more that one 1099-C for one type of cancellation for a debt on your main home. For example, you could report two 1099-Cs from different lenders for a foreclosure on your main home.

In situations where you need to file more than one 1099-C, you'll need to have your return completed by a tax preparer.

If you don't have a Tax Professional, you can visit TurboTax Personal Pro and find a Tax Professional who can prepare your taxes virtually. This is a service provided by Intuit, the makers of TurboTax.